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<br /> Local Option Sales Tax Analysis for Elk River, MN 11 <br />Building Materials <br />29.7 percent of total taxable retail and <br />service sales <br />These 12 establishments sell lumber, <br />hardware, paint, wallpaper, tile, hardwood <br />floors, roofing, fencing, ceiling fans, lawn <br />equipment, and garden items. <br /> <br /> ($Millions) <br />Actual taxable sales $78.88 <br />Potential sales $43.46 <br />= $ variance $35.42 <br /> = as % of potential 81.5% <br /> <br /> <br />Unadjusted Trade Area Analysis <br /> <br />Potential sales to residents $43.46 <br />Surplus (local preference and non-residents) $35.42 <br /> Total $78.88 <br />Non-resident share per group 44.9% <br /> <br /> <br />Analysis with Adjustments <br /> <br />Residents' $ share $35.50 <br />Non-residents' $ share $43.38 <br /> Total $78.88 <br />Non-resident share per group 55.0% <br /> <br />Analysis and Recommendations for Building Materials <br />Along with gasoline and general merchandise categories, building <br />materials often account for a significant amount of total taxable sales (30 <br />percent of all retail and service sales for the city). The trade area analysis <br />estimates that the city draws in significantly more sales than expected. <br />Even with such strong evidence of in-shopping, the issue of cross-hauling <br />is still at play, where residents are still out-shopping even though non- <br />residents more than make up for their losses. In this context with nearby <br />competing retail centers. Extension set the non-local resident spending <br />share at 55 percent of building material sales, up from 46% as calculated <br />by the trade area analysis. <br /> <br />